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Republic of the Philippines

PALAWAN STATE UNIVERSITY


College of Business and Accountancy
Puerto Princesa City

WITHHOLDING TAX RATES


MONTHLY REMITTANCE RETURN OF CREDITABLE INCOME TAXES WITHHELD (EXPANDED):
BIR Form No. 1601-E/2307
DESCRIPTION
Gross Income below P720,000:
Licensed Professionals (PRC/SC) fees whether individuals/juridical persons including
Mgnt./technical consultants; Insurance agents/adjusters; Business/bookkeeping
agents/agencies
Professional entertainers; athletes; radio/TV/stage directors and producers; Other
recipients of talent fees
Fees of directors who are not employees of the company
Payments for medical/dental/veterinary services thru Hospitals/ Clinics/Health
Maintenance Orgs.
Payment by the GPP to its partners, including medical practitioners
Gross Income above P720,000:
Licensed Professionals (PRC/SC) fees whether individuals/juridical persons including
Mgnt./technical consultants; Insurance agents/adjusters; Business/bookkeeping
agents/agencies
Professional entertainers; athletes; radio/TV/stage directors and producers; Other
recipients of talent fees
Fees of directors who are not employees of the company
Payments for medical/dental/veterinary services thru Hospitals/ Clinics/Health
Maintenance Orgs.
Payment by the GPP to its partners, including medical practitioners

TAX
RATES

10%

15%

Rentals- film, real/personal properties, poles, satellites & transmission facilities, billboards
Individual/Corporate

5%

Income payments to prime contractors/sub-contractors - Individual/Corporate

2%

Income distribution to beneficiaries of estates and trusts

15%

Gross commission or service fees of custom, insurance, stock, real estate, immigration and
commercial brokers & fees of agents of professional entertainers - Individual/Corporate

10%

Payments made by credit card companies Individual/Corporate

of
1%

Income payments made by the government to its local/resident suppliers of goods Individual/Corporate

1%

Income payments made by the government to its local/resident suppliers of service Individual/Corporate

2%

Income payments made by top 20,000 private corporations to their local/resident suppliers
of goods - Individual/Corporate

1%

Income payments made by top 20,000 private corporations to their local/resident suppliers
of services - Individual/Corporate

2%

Addtl payments to govt. personnel from importers, shipping and airline companies/agents
for overtime services

15%

Commission, rebates, discounts and other similar considerations paid/granted to


independent & exclusive distributors, medical/technical & sales representatives &
marketing agents & sub-agents of multi-level marketing companies Individual/Corporate

10%

Gross payments to embalmers by funeral parlors; Payments made by pre-need companiesIndividual/Corporate

1%

Tolling fee paid to refineries - Individual/Corporate

5%

Income payments made to suppliers of Agricultural prod.- Individual/Corporate

1%

Income payments on purchases of minerals, mineral products & quarry resources Individual/Corporate

5%

Income payments on purchases of gold by BSP from gold miners/suppliers under PD 1899,
as amended by RA No. 7076- Individual/Corporate

5%

On gross amount of refund given by Meralco to customers with active contracts as


classified by Meralco - Individual/Corporate

25%

On gross amount of refund given by Meralco to customers with terminated contracts as


classified by Meralco - Individual/Corporate

30%

Withholding on gross amount of interest on the refund of meter deposit whether paid
directly to the customers or applied against customer's billing Residential/Non-residential
and General Service customers whose monthly electricity consumption exceeds 200 kwh as
classified by MERALCO other DU - Individual/Corporate
Withholding on gross amount of interest on the refund of meter deposit whether paid
directly to the customers or applied against customer's billing - Non-Residential customers
whose monthly electricity consumption exceeds 200 kwh as classified by other electric
Distribution Utilities (DU) - Individual/Corporate
Income payments made by the top five thousand (5,000) individual taxpayers to their
local/resident suppliers of goods other than those covered by other rates of withholding taxIndividual/Corporate
Income payments made by the top five thousand (5,000) individual taxpayers to their
local/resident suppliers of services other than those covered by other rates of withholding
tax- Individual/Corporate
Income payments made by political parties and candidates of local and national elections of
all their purchase of goods and services as campaign expenditures, and income payments
made by individuals or juridical persons for their purchases of goods and services intended
to be given as campaign contribution to political parties and candidates
-Individual/Corporate
Income payments received by Real Estate Investment Trust (REIT)
Interest income derived from any other debt instruments not within the coverage of deposit
substitutes and Revenue Regulations No. 14-2012 subject to Creditable/ Expanded
Withholding Tax - Individual/Corporate

10%

20%

1%

2%

5%

1%
20%

MONTHLY REMITTANCE RETURN OF VALUE-ADDED TAX AND OTHER PERCENTAGE TAXES


WITHHELD:
BIR Form No. 1600/2306
DESCRIPTION
FWVAT on payments for purchases of Goods/Services

TAX
RATES
5%

Lease or use of properties or property rights owned by non-residents (Private/Government


Withholding Agent)

12%

Other services rendered in the Philippines by non-residents (Private/Government


Withholding Agent)

12%

Tax on carriers and keepers of garages; life insurance premiums

3%

Franchise Tax on Gas and Water Utilities; Radio/TV broadcasting co. whose GR is less than
P10M (Non-VAT)

2%

Persons exempt from VAT under Sec. 109(v) (creditable)-Government Withholding Agent

3%

Tax on overseas dispatch, message or conversation originating from the Philippines


Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions.
On interest, commissions and discounts from lending activities as well as income from
financial leasing, on the basis of remaining maturities of instruments from which such
receipts are derived: - Maturity period is five years or less
Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions.
On interest, commissions and discounts from lending activities as well as income from
financial leasing, on the basis of remaining maturities of instruments from which such
receipts are derived: - Maturity is more than five years
Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions.
On dividends and equity shares and net income of subsidiaries
Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions.
On royalties, rentals of property, real/personal, profits from exchange and all other items

10%
5%

1%

0%
10%

treated as GI under the Code. On net trading gains w/in the taxable year on FOREX, debt
securities, derivatives, and other similar financial instruments
Tax on Other Non-Banks Financial Intermediaries Not Performing Quasi-Banking Functions.
On interest, commissions and discounts from lending activities as well as income from
financial leasing, on the basis of the remaining maturities of instrument from which such
receipts are derived: - Maturity period is five years or less
Tax on Other Non-Banks Financial Intermediaries Not Performing Quasi-Banking Functions.
On interest, commissions and discounts from lending activities as well as income from
financial leasing, on the basis of the remaining maturities of instrument from which such
receipts are derived: - Maturity is more than five years

5%

1%

Tax on Other Non-Banks Financial Intermediaries Not Performing Quasi-Banking Functions.


On all other items treated as gross income under the Code

5%

Business Tax on Agents of foreign insurance co. - insurance agents

4%

Business Tax on Agents of foreign insurance co. - owner of the property

5%

Tax on International Carriers

3%

Tax on amusement places, such as cockpits, cabaret, night or day clubs, videoke bars,
karaoke bars, karaoke television, karaoke boxes, music lounges and other similar
establishments
Tax on boxing exhibitions

18%

10%
15%

Tax on professional basketball games

30%

Tax on jai-alai & race tracks


Tax on sale, barter or exchange of shares of stocks listed and traded through the Local
Stock Exchange

of
1%

Tax on shares of stock sold or exchanged through IPO and secondary PO - Not over 25%

4%

Tax on shares of stock sold or exchanged through IPO and secondary PO - Over 25% but not
exceeding 33 1/3%

2%

Tax on shares of stock sold or exchanged through IPO and secondary PO - Over 33 1/3%

1%

VAT Withholding on Purchase of Goods/Services w/ waiver of privilege to claim input tax


credit (creditable/final)

12%

Persons exempt from VAT under Section 109v (final/creditable) - Private Withholding Agent

3%

MONTHLY REMITTANCE RETURN OF FINAL INCOME TAXES WITHHELD


BIR Form No. 1601-F/2306
DESCRIPTION
Interest on foreign loans payable to non-resident foreign corporations (NRFCs)

TAX
RATES
20%

Interest and other income payments on foreign currency transactions/loans payable to


OBUs/FCDUs

10%

Cash/Property dividend payments by domestic corporation to citizens and resident aliens

10%

Cash/Property dividend payment by domestic corporation to NRFC

30%

Cash/Property dividend payment by domestic corporation to Non-Resident Foreign


Corporations whose countries allow tax deemed paid credit (subject to tax sparing rule)

15%

Cash/Property dividend payment by domestic corporation to NRAETB; including partners


share of NRAETB in distributable NI after tax from partnership

20%

On other payments to non-resident foreign corporations (NRFCs)

30%

Distributive share of individual partners in a taxable partnerships/assoc./ joint account/joint


venture/consortium

10%

All kinds of royalty payments to RC, NRC, NRAETB, DC, RFC (other than WI 380 and WI 341)

20%

On prizes exceeding P10,000 and other winnings paid to individuals

20%

Branch profit remittances by all corporations except PEZA/SBMA/CDA registered

15%

On gross rentals, lease and charter fees derived by non-resident owner or lessor of foreign
vessels

4.5%

On the gross rentals/ lease/charter fees derived by non-resident lessor of aircraft,


machineries and other equipt.

7.5%

On payments to oil exploration service contractors and subcontractors (OESS) NRAETB/NRFC-ETB


Payments to Filipinos/alien individuals employed by Foreign Petroleum Service
Contractors/Subcontractors, OBUs and Regional/ Area HQs and Regional Operating HQs of
Multinational Companies occupying executive/managerial and technical positions

8%
15%

Payments to NRANETB except on sale of shares in domestic corporation and real property

15%

Royalties/payments to non-resident individual/foreign co. cinematographic film owners/


lessors/distributors

25%

Final tax on interest or other payments upon tax-free covenant bonds, mortgages, deeds of
trust or other obligations under Sec. 57C of the NIRC of 1997

30%

Royalties paid to citizens, resident aliens and NRAETB on books, other literary works and
musical composition

10%

Informer's cash reward paid to individuals/juridical persons

10%

Cash or property dividends paid by a Real Estate Investment Trust (REIT) to


individuals/corporations

10%

REMITTANCE RETURN OF PERCENTAGE TAX ON WINNINGS AND PRIZES WITHHELD BY RACE


TRACK OPERATORS
BIR Form No. 1600-WP/2306
DESCRIPTION
Tax on Winnings from double, forecast/quinella and trifecta bets on horse races paid by
government/private withholding agent
Tax on Winnings or prizes paid to winners of winning horse race tickets other than double,
forecast/quinella and trifecta bets; and owners of winning race horses paid by
government/private withholding agent

TAX
RATES
4%

10%

QUARTERLY REMITTANCE RETURN OF FINAL INCOME TAXES WITHHELD


BIR Form No. 1603/2306
DESCRIPTION
Alien/ Filipino employed/occupying the same position as those of aliens employed in
selected multinational cos.
Others in general

TAX
RATES
15%
32%

MONTHLY REMITTANCE RETURN OF FINAL INCOME TAXES WITHHELD


BIR Form No. 1602/2306
DESCRIPTION
From bank deposits - Savings/Time; TBs and Govt. Securities; deposit substitutes, trust
funds and other similar arrangements Individual/Corporate
On foreign currency deposits Resident - Individual/Corporate
Interest payments to taxpayers enjoying preferential tax rates (i.e. PEZA Registered
Enterprises)
On interest income from long-term deposit in the form of savings trust funds, deposit
substitutes which was pre-terminated by the holder before the 5th year - individual (Less
than 3 years)
On interest income from long-term deposit in the form of savings trust funds, deposit
substitutes which was pre-terminated by the holder before the 5th year - individual (3 years
to less than 4 years)
On interest income from long-term deposit in the form of savings trust funds, deposit
substitutes which was pre-terminated by the holder before the 5th year - individual ( 4
years to less than 5 years)

TAX
RATES
20%
7.5%
5%
20%

12%
5%

WITHHOLDING TAX REMITTANCE RETURN FOR ONEROUS TRANSFER OF REAL PROPERTY


OTHER THAN CAPITAL ASSETS
BIR Form No. 1606/2306

DESCRIPTION
Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279
Not over P180,000 (MM and other highly urbanized areas)
Not over P150,000 (other areas)
NOT Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279 but
habitually engaged in RE business
Not over P500,000
NOT Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279 but
habitually engaged in RE business
Over P500,000 P2,000,000
NOT Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279 but
habitually engaged in RE business
Over P2,000,000
NOT Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279 NOT
habitually engaged in RE business

TAX
RATES
0%
1.5%

3%

5%

6%